Introduction

Why do firms still rely on boring and outdated methods of collecting client data before starting the estate planning process? In an era of self-driving automobiles and computer applications able to synthesize terabytes of information in a matter of seconds, why are paper forms or static electronic versions of the same still employed to collect estate planning data from clients? As we enter the artificial intelligence (AI) age, isn’t it time to enhance the client experience during the data collection process? Let us be transformative in the way firms interact with clients in the collection and use of their information.

Current Experience in Estate Planning

It is a wonderful experience meeting a prospective client and learning how they found you to provide the legal services they are looking for. Excitement increases after you share with the prospect that you can provide the estate planning services they are seeking, and they do not grimace over the fees for the service. As this budding professional relationship is starting out, the prospective client senses relief in knowing that you are going to provide the counsel and documents necessary to carry out their estate planning objectives.  You, of course, are eager to get the estate planning process started to meet (if not exceed) the new client’s expectations. What comes next? Whether at the end of a meeting or in an email, likely you deliver a data collection form to the client to complete. You emphasize the importance of completing this form so you will have all the information necessary to properly counsel and advise them.

Have you considered what the estate planning client questionnaire looks and feels like to the client, particularly to a client that doesn’t have much experience dealing with legal or financial matters (i.e., flashback to the time you attempted to fill out the health form at a physician’s office or hospital asking not only your health history but that of your ancestors)?  The client sees five or more pages of legal and financial questions and a sea of empty space to fill in replies. The questionnaire often asks:  How do you own, or have access to use, various assets (i.e., individually, jointly, through trust, etc.)? What are the values of your assets (i.e., personalty and realty)? Who are the beneficiaries of your accounts (i.e., P.O.D., T.O.D., retirement, etc.)? What retirement plans do you have (i.e., IRAs, Roth accounts, profit sharing, pension, etc.)?

The client is now confused and overwhelmed in that they do not know how to answer all the questions asked, yet they know you need the information before you can begin helping them. The client grows frustrated and begins to question whether it is worth completing the form. The client may set the form aside in hopes of finding more time or zeal to complete it. Momentum is lost, and the client is likely to procrastinate and may never get around to completing the form.

Sound familiar? Is there potential for a better way to engage the client and maintain enthusiasm, even during the data gathering process? Yes, if you catch the vision and support its development.

Future Practice of Estate Planning: Gamification of Data Gathering

Consider the following opportunity. In lieu of delivering a multipage estate planning questionnaire to a new client that overwhelms and frustrates them, how about sending an invitation to the new client to “play” a digital game? The gaming platform is an interactive data gathering electronic system (i.e., like apps collecting user information on smartphones) that “rewards” clients for completing any question within your firm’s questionnaire. The rewards can be based on what the firm would charge if a paralegal, associate attorney, or partner personally collected the information, asking every question and writing down every response. For example, for every legal name of a family member, how much time would it take to ask the question and write down the reply? On average, if it took at least one minute to ask the question and write down the reply (verifying the proper spelling), then a reward can be shown to the client of them “saving” 1/60th (i.e., one minute out of a sixty-minute hour) of the hourly rate.  Hence, if a firm’s standard procedures require an associate attorney with an hourly rate of $600 to collect an estate planning client’s information, then the client’s reward for each family member’s name given will be $10. This reward will be immediately displayed on the client’s screen with every response given. So, by the time a client lists their spouse, children, extended family members, etc., the rewards shown on the screen will be likely be nearing, if not exceeding, $100. Continuing this reward system throughout the estate planning questionnaire, the client will likely receive a total award exceeding several thousand dollars! This reward is communicated to the client, explaining that they have saved a significant amount of attorney fees for helping provide the required information for their estate plan.

Educating Clients on Estate Planning

Another benefit of using an electronic platform is the ability to define legal terms and illustrate common estate planning strategies to the new client. For example, if the client doesn’t fully understand the concept of value for estate planning purposes, then the firm can provide that information to the client either by a link to a written narrative on the topic or a link to a video of a member of the firm explaining the concept or value for estate planning purposes.  Armed with this new understanding of value, the client will be in a better position to discover this information and respond accordingly to the question. Additionally, the estate planning platform may request proof of value from the client, giving the client the opportunity to upload their source for the value information given (e.g., formal appraisal, tax assessment notice, quarterly portfolio statement, etc.). Furthermore, if the client is considering alternative strategies for their estate plan, then the platform can provide resources such as whitepapers, articles, flowcharts, or videos that inform and illustrate the competing strategies that have not been personalized to the client, yet. With every click on a resource and viewing of an illustration or video, the client continues to receive rewards based on the amount of time it would have taken an attorney to present the information to the client.

Personalizing and Illustrating the Client’s Estate Plan

As the client continues to interact with the firm’s estate planning platform (i.e., data collection and education platform), the platform will begin assigning names and assets to the various identified family members and beneficiaries. For example, if the client chooses to see what the common estate plan of “all to spouse, if surviving, then to children equally” looks like, the firm’s estate planning platform could have pre-built scenarios to illustrate this in a variety of ways. One illustration could utilize a flowchart that shows asset flows and estimated amounts taken for taxes, court costs and attorney fees for each generation of transfer. The net asset flows and values will be highlighted. Another illustration could utilize a goals-based approach and illustrate the likelihood of each goal’s achievement. For example, if the family’s breadwinner dies before accumulating enough assets (or having a large enough life insurance policy death benefit) to provide for their surviving spouse’s standard of living or to meet their desired dreams for their children (i.e., wedding, college education, etc.), then the system could illustrate this through various pictures or tiles.  A cap and gown tile could represent a college education. A wedding gown tile could represent the goal of financing a daughter’s wedding. When the breadwinner passes, their avatar could fade into the background and the remaining avatars representing the surviving family remain (with all the associated goals that they are attached to shown beside them). If the breadwinner’s goal for any surviving family member is likely to be achieved, then the tiles associated with that goal will remain highly visible. If a goal is unlikely to be achieved, then the tile representing that goal will fade. The methods available to represent the impact of the client’s estate plan are boundless when illustrated on the firm’s estate planning platform.

The Transformation of Estate Planning Data Collection and Client Engagement is Near

Back to the question posed at the outset: isn’t it time to enhance the client experience during the data collection process? Yes! Could better and more timely outcomes be reached? Yes, absolutely.

So, what is holding you back from making this a reality? With your firm’s support and resources, you can become an early leader in this estate planning revolution.

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Harvey Hutchinson serves as a Lead Financial Planner with Brown Financial Advisory in Fairhope, Alabama. Previously, Harvey practiced law with an emphasis on estate planning. Harvey is a current member of the board of directors for the National Association of Estate Planners & Councils (NAEPC), having served as the chair of the Accredited Estate Planner (AEP) Committee. Harvey has served as an instructor for Emory University’s continuing education program since 2007, teaching wills, trusts & estates among other classes, and as a lecturer for the University of Virginia’s School of Continuing and Professional Studies since 2022.